SAC’s overture to prosecutors is an attempt to strike a deal that would involve paying a fine of as much as $1bn, according to the report, which cited anonymous sources.

The US government charged the Stamford, Connecticut-based firm on 25 July with securities and wire fraud, saying SAC presided over a culture in which employees flouted the law and were encouraged to tap their personal networks for inside information about publicly traded companies.

Prosecutors simultaneously filed a related civil case against SAC, seeking forfeitures and money laundering penalties. Cohen was not charged as an individual, but earlier in July the US Securities and Exchange Commission filed a civil administrative proceeding against him, accusing him of failing to supervise two one-time employees